Reserve ratio was 15% at the balance sheet the whole commercial banking system rather than for a single <u>lend out or invest.</u>
<h3>What is
commercial banking ?</h3>
A financial institution that accepts deposits, provides checking account services, makes different loans, and provides fundamental financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses is referred to as a "commercial bank." Most people conduct their financial business at commercial banks.
Commercial banks generate revenue through making loans, including mortgages, vehicle loans, business loans, and personal loans, and charging interest on those loans. The money needed to fund these loans is provided by customer deposits to banks.
- Commercial banks provide basic banking services, such as deposit accounts and loans, to individuals and small to medium-sized businesses.
- Commercial banks profit from a range of fees as well as from the interest they get on loans.
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Answer:
The Intrinsic Value or Calculated Price of the under-study stock is $98.57.
Explanation:
In the 1st year, the company is expected to Pay a Dividend of $5.3. This is calculated by multiplying the compound factor (1.06) with the current dividend of $5.
In the 2nd year, the growth rate will remain the same. So, multiplying $5.3 with the same compound factor of (1.06) and you will get $5.62.
In the third year, the growth rate will come down to 3.5% and this rate will be constant now. So, multiply the dividend of year 2 with the compound factor of (1.035) and you will get $5.81. Convert this figure to Perpetuity and the formula is;
Cash Flow / Cost of Equity - Growth Rate
This formula for Horizon value will give you $105.72.
Now, you have to find the Present value of all these three calculated Cash flows, add them all and you will get the Intrinsic Value.
Thanks.
Answer:
Date Account and explanation Debit Credit
Dec 31 Prepaid insurance $10,000
($12000*30/36)
Insurance expense $10,000
Dec 31 Depreciation expense $15,000
Accumulated depreciation-Equipment $15,000
Dec 31 Salaries expense $18,000
Salaries payable $18,000
Dec 31 Interest expense $4,000
($200000*12%*2/12)
Interest payable $4,000
Dec 31 Deferred rent revenue $1,000
($3000/3
Rent revenue $1,000
Dec 31 Rent revenue $2,000
Deferred rent revenue $2,000
Answer:
0.28 %
Explanation:
Property A:
Percentage change in prices= (New price – old price)/Old price
= (375000 – 350000)/350000
=.0714= 7.14%
Monthly percentage= 7.14/24= .2975%
Property B:
Percentage change in prices= (New price – old price)/Old price
= (340000 – 325000)/325000
= .0461= 4.61%
Monthly percentage= 4.61/18= .256%
As they have equal weightage= (.256 + .2975)/ 2
= .2767= .28%
The definition of average variable cost is total variable cost divided by output (Q).
<h3>What is an
average variable cost?</h3>
This refers to a firm's variable costs such as labor, electricity divided by the quantity of output produced.
Hence, it is also defined as total variable cost divided by output (Q).
Therefore, the Option A is correct.
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